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Analysts: Shortages of next-gen consoles at launch expected

Robert W. Baird analyst Colin Sebastian states that there will be next-gen console shortages at launch later this year, claiming, "it is more likely than not that there will be initial shortages."

He went on to note, "This also partly explains why the manufacturers have been somewhat judicious is allocating pre-sale units to retailers, so that there won't be a lot of unhappy customers from day one."

Sebastian went into what timing Microsoft and Sony would need to use to maximize profits.

"From a timing perspective, both platforms will want to launch before Thanksgiving/Black Friday, and ideally at least a couple of weeks in advance of that in order to replenish the retail channel," he stated, adding "In terms of who goes first, it would be certainly be ideal to launch first, and gain all of the initial attention and momentum, as console launches are really the only equivalent of a 'red carpet' event for the industry."

The PlayStation 4 and Xbox One are both sold out at online and brick-and-mortar retailers like Amazon.com and GameStop. The PS4 is scheduled to launch in November 2013, while Microsoft has yet to announce an Xbox One launch date.